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Dish Network beginning sales, Dish fibs to their retailers
One thing that can't be stressed enough is Dish Network may not even exist today if it wasn't for their original satellite retailers. Its likely Dish Network would have been thrown to the wayside along with the likes of AlphaStar and Primestar if not for the original Dish Network dealers. In 1996 Echostar Dish Network could not find a single major retail chain that would take them in. Which I believe led Dish Network to give the satellite retailers empty promises, to bring in more retailers and build up the subscriber base, so the big retail giants like Sears and Sam's Club would take notice.
In the beginning Echostar Dish Network deceived - promised their retailers Life-Time residuals which was in the original retailer agreement/contracts. As you could expect the retailers took the bait and ran with it, planning on building up Dish Network as well as their own businesses with the promise of a secure future retirement fund.
After the retailers made Dish Network a success and Charlie Ergen a Billionaire, the retailers found no gratitude. In fact it was the opposite, Echostar Dish Network took away the promised Life-Time residuals in future retailer agreement/contracts. Dish Network didn't exactly put a gun to their heads to sign new agreements, but in effect basically said sign the new retailer agreement or they won't supply any equipment, which translated to no equipment no sales and Out Of Business! Imagine how those original retailers must have felt after Dish Network stabbed them in the back, especially after they made them a huge success. Simply put Dish Network broke promises and those life-time residuals went back into their own pockets.
It makes you wonder why anyone would want to subscribe to Dish Network services, if they knew how disloyal they were to their retailers who made them what they are today. Besides the life-time residuals issue, Dish Network has managed to nickel & dime the retailer at many different levels. To name but a few, they now make their retailers pay for the credit checks on a potential Dish Network customer. Retailers are expected to buy showroom receivers and also pay $60 per year per receiver for programming just to demonstrate Dish Networks services? Now that Echostar Dish Network has made it to the big retail giants like Sears, Radio Shack, Sam's Club, etc. they are now putting many of their own business expenses onto the dealers / retailers shoulders and making money at it besides.
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